GEOGRAPHY FORM TWO TOPIC 7: MANUFACURING INDUSTRY

MANUFACURING INDUSTRY

Concept and Importance of Manufacturing Industries

Manufacturing Industry

Define manufacturing industry

Manufacturing is the production of goods for consumption or sale using labour, machines, tools, chemical and biological processes or formulation.

The term may refer to a range of human activity but is not commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished products may be used for manufacturing other more complex products, such as aircraft, household appliances, automobiles, or sold to wholesalers, who in turn sell them to retailers, who finally sell them to end users – the consumers.

Therefore, a manufacturing industry is an industry that is involved in the large scale manufacturing, processing, fabrication, or preparation of goods from raw material or commodities

The Importance of Manufacturing Industry

Explain the importance of manufacturing industry

The manufacturing industry plays a vital role in the economy of many countries. It contributes to growth and strengthening of the country’s economy. The wealthiest countries in the world are heavily industrialised.

The manufacturing industry is important in the following ways:

1. Source of employment:Operations in any industry require manpower or labour. People are employed to undertake various activities carried out in a manufacturing industry. This helps lessen the problem of unemployment in the respective country.
2. Diversification of economy:Whereby the economy of a country depends mainly on other sectors such tourism, mining, fishing, and lumbering, for example, the establishment of manufacturing industries help to diversify the country’s economy. In this way, if one sector collapses the economy will still remain stable.
3. Source of foreign exchange:The finished goods from manufacturing industries are often exported overseas. The sale of such goods earns the country the much needed foreign currency and hence helps to improve the country’s economy.
4. Increased agricultural production:Most of the agricultural produces are processed into finished products by the manufacturing industries. So long as there is demand for agricultural produces by the industries, farmers will produce more to meet the demand of the industries. Hence agricultural production will increase because the surplus from farmers finds a ready market, that is, the manufacturing industries.
5. It stimulates the development of infrastructure:Industries require a good network of roads and railways linking them to areas where raw materials are produced. Industries, therefore, lead to improvement of transport infrastructure between their locations and the sources of raw materials.Industries also need power and water infrastructure set in place. Thus, they also lead to improvement of public services which could have otherwise not been developed.
6. Improvement of international relations:The exchange of goods and services for money between countries help to improve the diplomatic relationship between the trade partners. This happens through interaction of traders and business people between two or more trade partners.
7. Higher earning:Processing of raw material adds value to a commodity, enabling the country earn more by exporting processed goods than when exporting the unprocessed raw materials.
8. Reducing dependency on imports:Manufacturing industries enable the countries to become self-sufficient in the goods they produce. This means that the country can only import the goods and services that are not manufactured within its borders. This reduces dependency on imported goods, hence saving the government revenue and foreign currency that could be spent on imported products. The revenue is consequently directed towards improvement of social services in the country.

Types of Manufacturing Industries

Types of Manufacturing Industries in East Africa

Describe the types of manufacturing industries in East Africa

Manufacturing industries are the industries concerned with processing and changing the raw materials into semi-processed or finished products or goods. There are two broad types of manufacturing industries as outlined below:

Processing industries

These are primary industries which convert the raw materials into products that can be used as raw materials for other industries which then process or convert them into finished goods. Examples of processing industries include coffee pulping plants, decorticators, cashew nut hullers and sisal processing factories.

Fabrication industries

Products of Each Type of Manufacturing Industry

Identify products of each type of manufacturing industry

Type of industry and product manufactured.

• Heavy industries:These are capital-intensive and large scale industries involved in the manufacture of bulky and heavy products. The products are made by using raw materials like iron and steel. Examples of heavy industries are those involved in the manufacture of heavy machinery such as ships, cars, cranes, aeroplanes, bulldozers and rockets.
• Light industries:These are less capital-intensive industries involved in the manufacture of consumer goods, such as cosmetics, plastics, textiles, paper, shoes, consumer electronics and home appliances. These industries require only a small amount of raw materials, area, and power. The goods they manufacture are often small but of relatively high value per unit weight.
• High-tech industries:High technology industries, often abbreviated ashigh techorhi-techindustries are the type of industries involved in the manufacture of high technology products, such as electronic goods. Examples of electronic devices include computers, phones, telephones, calculators, audio equipment, digital cameras, electrical equipment, etc. The high–tech industry is capital-intensive and reliant on research and development.

Factors for Location of Industries

Factors Necessary for Location of Industries

Name factors necessary for location of industries

Generally, location of industries is influenced by economic considerations though certain non-economic considerations also might influence the location of some industries. Maximisation of profit which also implies cost minimisation is the most important goal in the choice of particular places for the location of industries. There are several factors which pull the industry to a particular place. Some of the major factors are discussed below:

Raw materials

The significance of raw materials in manufacturing industry is so fundamental that it needs no emphasising. Indeed, the location of industrial enterprises is sometimes determined simply by location of the raw materials.

Some raw materials are bulky and heavy and transporting them over long distances may be very costly. For this reason, industries which use heavy and bulky raw materials in their primary stage in large quantities are usually located near the source of the raw materials. For example, iron and steel industries in Germany are located in the iron mining areas of the Ruhr region.

It is also true in the case of raw materials which lose weight in the process of manufacture or whose transport cost cannot be afforded or cannot be transported over long distances because of their perishable nature. For instance, vegetable and fruit processing industries are often located in areas close to the source of these raw materials.

The same case applies to those industries which depend on imported raw materials. They are normally located close to the points of arrivals e.g. the sea ports or along the coasts. For example, industries in Japan are concentrated close to the coast because they use imported raw materials.

Power

Regular supply of power is a pre-requisite for the location of industries. Coal, mineral oil and hydro-electricity are the three important conventional sources of power. Most industries tend to concentrate at the source of power.

The iron and steel industries which mainly depend on large quantities of coking coal as source of power are frequently tied to coal fields. Others like the electro-metallurgical and electro-chemical industries, which are great users of cheap hydro-electric power, are generally found in the areas of hydro-power production, for instance, aluminium industry. Therefore, large and heavy industries are quite often established at a point which has the best economic advantage in obtaining power and raw materials.

However, as petroleum can be easily piped and electricity can be transmitted over long distances by wires, it is possible to disperse the industries over a larger area if need be.

Labour

Adequate supply of cheap and skilled labour is necessary for an industry. The attraction of an industry towards labour centres depends on the ratio of labour cost to the total cost of production. Labour supply is important in two respects: (a) workers in large numbers are often required; (b) people with skill or technical expertise are needed

The nature and amount of labour required will depend on the type of an industry and the kind of goods and/or services produced. Labour-intensive industries such as automobile industries require a large workforce. So, such industries are located in places with abundant labour. Some industries require skilled while others need semi-skilled or unskilled labour

Industries requiring semi-skilled and unskilled labour are often located in urban centres where the availability of such labour is not a problem. However, unskilled labour force is also abundant in urban centres, which mainly consists of unskilled job seekers who move from the countryside to seek for greener pastures in urban centres.

Transport and communication

Transport by land or water is necessary for the movement of raw materials and for the marketing of the finished products. A good transport and communication infrastructure is important for carrying raw materials to the industry and transporting finished goods from the industry to consumers. It is also required for moving workers, machinery, chemicals and other materials.

Communication is important in connecting with buyers and suppliers. Communication links are facilitated by phones and computers. Manufacturers can easily market and advertise their products via the internet. This also enables the buyers to make their order online, a fact that lowers their trading costs significantly.

The entire process of manufacturing is useless until the finished goods reach the market. Nearness to market is essential for quick transport of manufactured goods. It helps in reducing the transport cost and enables the consumer to get things at cheaper rates.

A ready market is most essential for perishable and heavy products. Perishable products are such as vegetables, breads and milk. Industries producing heavy products should be located close to potential markets so as to reduce the transportation costs and eliminate the problems encountered in transportation of such products.

Water is another important requirement for industries. Many industries are established near rivers, canals, and lakes because of this reason. Iron and steel, textile, coffee pulping, sugar cane processing, paper mills, brewing, soft drink and chemical industries require large quantities of water for their proper functioning

Market

The entire process of manufacturing is useless until the finished goods reach the market. Nearness to market is essential for quick transport of manufactured goods. It helps in reducing the transport cost and enables the consumer to get things at cheaper rates.

A ready market is most essential for perishable and heavy products. Perishable products are such as vegetables, breads and milk. Industries producing heavy products should be located close to potential markets so as to reduce the transportation costs and eliminate the problems encountered in transportation of such products.

Water

Water is another important requirement for industries. Many industries are established near rivers, canals, and lakes because of this reason. Iron and steel, textile, coffee pulping, sugar cane processing, paper mills, brewing, soft drink and chemical industries require large quantities of water for their proper functioning.

Site

Site requirement for location of an industry is of utmost significance. An industry can only be located in an area if there is enough land space to build it. Sites, generally, should be flat and well served by adequate transport facilities. A large piece of land is required to build factories. Now, there is a tendency to set up industries in rural areas because the cost of land in urban centres has shot up.

Climate

Climate plays an important role in the establishment of industries at a place. Harsh climate is not much suitable for the establishment of industries. There can be no industrial development in extremely hot, humid, dry or cold climate. Cotton fabric industries require humid climate because cotton threads tend to break in dry climate.

Capital

Modem industries are capital-intensive and require huge investments. A lot of money is needed in the establishment of infrastructure and transportation of raw materials, goods and other requirements. Capital is also required to set up industrial machinery. However, capital does not influence the location of an industry to a large extent. It is only a problem in case the cost of land and rent rates, especially in urban areas, are extremely high.

Government policies

Government policy in planning the future distribution of industries, for reducing regional disparities, elimination of pollution of air and water, and for avoiding their heavy clustering in big cities, is an important factor in location of industries. The government may discourage the concentration of industries in one place due to a number of reasons as outlined below:

1. Economic reasons: Industries should be distributed equitably in the country to ensure equitable development of all regions of the country. This will lead to job creation and hence solve the problem of rural-urban migration. For example, the location of many industries in different regions of Tanzania soon after independence was due to this reason.
2. Political reasons: This is a case whereby political leaders dictate the location of an industry in a certain area for mere political gain.
3. Environmental reasons: Industries produce much smoke and harmful waste. So they are always located away from residential areas, arable land or community water sources. This is done in order to avoid environmental pollution.
4. Security reasons: All industries are not concentrated in just one area to avoid great loss in case of any sabotage or attack by terrors. It is, therefore, important to establish industries in different locations.

Industrial location

Industries tend to develop at the place of their original establishment, though the original cause for their location may no longer exist. This phenomenon is referred to as inertia. It is sometimes termed as geographical inertia or industrial inertia. Such industries may continue to exist in their previous locations due reasons such as:

1. The availability of skilled and experienced labour.
2. The presence of well developed transport and communication network.
3. Avoiding the expenses that may be incurred in moving to a new place.

How Pollutants affect the Environment, Industrial Employees and the Communities around the Plant

Explain how each pollutant affects the environment, industrial employees and the communities around the plant

During operation, manufacturing industries produce various pollutants which can pollute the environment and affect employees and the community in the vicinity of an industry. These pollutants are likely to pollute the environment (land, water, air and organisms) if proper measures are not taken to control the release of pollutants to the environment. There are many pollutants resulting from manufacturing industries.

Types of industrial pollutants

Industries release a diversity of pollutants which include gases, liquid waste, noise and particulate matter. The effects of these pollutants are as outlined below:

Gases

Industries are the main sources of gaseous pollutants especially in heavily industrialized countries. These pollutants include carbon monoxide (CO), carbon dioxide (CO₂), nitrogen oxides (NO_x), sulphur dioxide (SO₂) and chlorofluorocarbons (CFCs).

• Effects on employees:The gases may be inhaled by the employees and cause serious health problems. For example, carbon monoxide is a poisonous gas which combines with haemoglobin in the blood and stops the haemoglobin carrying oxygen from the lungs to body tissue and vital organs (most notably the heart and the brain). Inhaling high levels of the gas can cause vision problems, physical or mental impairment and even death.
• Effects on the environment:The effects of industrial gases on the environment are many and have far-reaching consequences. The most notorious and notable effects include global warming, ozone layer depletion, acid rain, ocean acidification and soil pollution.
• Effects on the surrounding community:The gases may also affect the community living close to the industry. The effects include health problems, blurred visibility, coughing, and aggravation or complication of medical conditions of individuals with asthma, lung and heart diseases, and respiratory allergies. Some gases, particularly sulphur dioxide, are the main cause of acid rain which destroys the buildings, the soil and harms the animals. This can lead to low agricultural production and hence famine to the surrounding community.

Particulate matter

• Effects on employees:The PM can cause serious health problems to employees which include aggravating asthma, acute respiratory symptoms such as coughing and difficult or painful breathing, chronic bronchitis and decreased lung function that can be experienced as shortness in breathing.
• Effects on the environment:The main effects of PM to the environment include reduced visibility (haze), soiling, and damage to materials. Solid particles, especially dust, can cover the plant leaves and hence interfere with the process of photosynthesis.The particles may be carried over long distances by wind and then settle on the ground or water. The effects of this settling include making the lakes and stream acidic, changing the nutrient balance in coastal waters and large river basins, depleting nutrients in the soil, damaging plants and crops, and affecting the diversity of ecosystem.
• Effects on the surrounding community:The PM can deplete the nutrients in the soil and hence affected agricultural production, leading to a drop in food production and hence famine. Particle pollution can also stain and damage buildings and other materials, including culturally important objects such as statues and monuments.

Liquid waste

Industries produce the liquid wastes that contain toxic and poisonous chemicals. These wastes are often dumped in water bodies and sometimes on land. The chemicals contained in industrial wastes may include lead, mercury, sulphur, asbestos, nitrates and many other harmful substances.

• Effects on employees:The harmful liquid waste may cause skin diseases or burns if they come in contact with the skin. When they are accidentally ingested or if they get into the body through wounded skin, they may poison the body and can even cause death.
• Effects on the environment:Untreated liquid industrial waste may pollute water bodies and the land, and harm living organisms. When damped in water, they can poison fish and other marine flora and fauna. The chemicals can also pollute the soil and consequently destroy soil properties, kill beneficial soil microorganisms, and poison the crops.
• Effects on the surrounding community:The industrial chemicals can pollute the soil and make it unproductive, so this can limit or stop agricultural production. The crops grown on a soil polluted with chemicals can absorb the chemicals, which may get incorporated in plant bodies. When man eats such crops, the chemicals can pass into his body and affect him adversely.The chemicals can pollute drinking water sources, thus rendering the water unwholesome for community consumption and commercial uses. If people use the water from polluted water bodies the chemical in water may harm their health in one way or another. It can also kill fish and other marine life due to chemicals dumped in water.

Noise

Industries produce a lot of noise which can have adverse effects on the environment and the community.

• Effects on employees:Prolonged exposure of employees to loud noise may cause loss of hearing and give rise to rapid ear damage. Noise can not only cause hearing impairment but it also acts as a causal factor for stress and headache. It is also known to cause blood pressure. Additionally, it can be a causal factor in employee accidents both by masking hazards and warning signs, and by hindering concentration.
• Effects on the environment:Loud noise may cause migration of animals from a certain area and hence result in the imbalance of ecosystem. Intense vibrations caused by a loud noise may loosen the soil, making it vulnerable to soil erosion agents.
• Effects on the surrounding community:Noise can cause loss of concentration and hearing to people living close to industries.The loud noise also interferes with people’s sleep making them less productive. It also makes it difficult for people to hold talks as they have to use a lot of energy to shout so as to hear and understand each other. It may also lead to poor health in young children by interfering with their normal sleeping routines.

Ways of reducing industrial pollution

1. Industries should be located far away from residential areas.
2. All industrial wastes must be thoroughly treated before being dumped into water bodies. Doing so will reduce or even eliminate the possibility of harming aquatic life, people or polluting the soil.
3. Recycling of industrial wastes should be emphasized.
4. Using energy-efficient combustion engines so as to minimize the release of harmful gases to the environment.
5. Lubrication of moving parts of machinery should be done timely and effectively in order to reduce the amount of noise produced. Employees should use ear plugs (ear muffs) to protect their ears from damage by extreme noise during work.
6. The government should formulate policies that govern sustainable industrial production without causing environmental pollution, and any industry violating the rules should be fined heavily or even get closed altogether.
7. Developing and using alternative energy sources such as solar energy and wind power which do not pollute the environment.

Focal Studies

The Production of Cars in Japan, Electronic Equipment in South Korea and Textiles in Tanzania

Explain the production of cars in Japan, electronic equipment in South Korea and textiles in Tanzania

Japan is a chain of islands located in eastern Asia between North Pacific Ocean and the Sea of Japan. Its major islands are Hokkaido, Honshu (the largest and most populous), Kyushu and Shikoku

Japan is one of the world’s industrialized countries. It is one of the leading countries in car manufacturing in the world. The Japanese automobile industry is one of the most prominent and largest industries in the world. Japan has been in the top three among the most car manufacturing countries in the world since 1960, surpassing Germany.

The country is the home to a number of companies that produce cars, construction vehicles, motorcycles, all-terrain vehicles (ATVs), and engines. Japan automobile manufacturers include Toyota, Honda, Daihatsu, Nissan, Suzuki, Mazda, Mitsubishi, Subaru, Isuzu, Kawasaki, Yamaha and Mitsouka.

The automobile manufacturing process involves making car parts and then assembling the parts to form a complete car (unit). The manufacturing of car parts is done by other companies using designs provided to them by the car manufacturer.

After assembling the parts, the car engines are tested, followed by painting of the complete cars. Most of these activities are performed by robots and other machines under the supervision of humans.

A number of factors have contributed to growth of car manufacturing in Japan. The factors include the following:

• Adequate capital:Car manufacturing companies have been conducting this business over a long period of time, so they have grown big financially and have attracted many financial institutions to lend them the capital they require to expand and extend their business. By the way, Japan is a rich country with a very stable economy. This has enabled it to finance the automobile industry adequately.
• Advanced technology:Japan has an advanced technology in car manufacturing and this technology has been advancing with time. Computerisation and use of robots has improved production efficiency. Research in automobile technology is being conducted in order to come up with better methods of production and new car models.
• Accessibility:Japan’s location makes it accessible from all directions by sea. As such, ships that bringing in raw materials and ships transporting finished products from the car manufacturing industries anchor and set sail from Japan’s ports.
• Market availability:Japan’s manufactures produce very durable, reliable, and popular cars. Thus, their cars are sold in many countries due to their relatively low cost of purchase and maintenance. This has provided car manufactures with a wide market. However, its car market has decreased slightly in recent years, particularly due to old and new competition from South Korea, China and India. Still, automobile export remains one of the country’s most profitable exports.
• Availability of labour:Japan has a large number of qualified and skilled personnel to work in the automobile industry. Though robots and other machines are also used in production, humans still remain the main workforce. Availability of considerably cheap labour tends to lower the cost of production and maximise profit. This is the reason cars made in Japan are affordable to many buyers, including the very poor African and Asian countries.
• Good infrastructure:Japan has very advanced and well maintained infrastructures, which undergoes regular upgrading and expansion. These include roads, modern railways systems, canals, seaports, and airports.
• Adequate energy resources:Car manufacturing industries need a lot of power. Japan has got numerous hydroelectric power stations, coal, and nuclear energy reactors, among other sources, that provide the energy required to operate its industries.
• Commitment and hard-working spirit:The Japanese are hard working people; they are committed in their jobs and the development of their country. This spirit has boosted their car manufacturing industry as well as other industries

The electronic equipment industry in South Korea

South Korea is located in East Asia, on the southern half of the Korean Peninsula. The only country with a land border to South Korea is North Korea. South Korea is mostly surrounded by water. To the West is the Yellow Sea, to the South is the East China Sea, and to the East is the Sea of Japan.

Although South Korea’s political scene has experienced a lot of instability, its economy has grown rapidly to become one of the best in the world. This has been geared (spearheaded) by its giant electronic industry, a light industry that produces products such as television sets, radiocassette recorders, microwave ovens, radios, watches, computers, video tapes, calculators and memory cards, among many others. The leading manufacturers of electronics in South Korea include Samsung and LG.

A number of factors have led to growth and development of South Korea’s electronics industry. These factors include the following:

• Adequate labour:South Korea has a large population of skilled and experienced labourers who work in the electronic industry. Because the industry is based on research and development, students are encouraged to take science subjects in schools and colleges, ensuring the modelling of future engineers, scientists and technical traders.
• Availability of capital:The giant electronic companies in South Korea have so far accumulated much wealth to invest in research and development of the electronic industry. Furthermore, the companies are trusted by big financial institutions which are ready and willing to borrow them whenever they need capital. The government’s financial support is also at the maximum.
• Advanced technology:South Korea has kept up with the changing trends in electronics technology. Indeed, in some areas, South Korea has set the standards in new technology. This has given its electronic industry an edged over other electronic manufacturers.
• Improved research:Research in electronics industry to come up with improved and modern products is very crucial in the development of the electronic industry in South Korea. A lot of the fund is injected into research to design high quality products to meet the changing market demands as well as liaise with stiff competition from other countries like China, Japan and North Korea.
• Availability of market:South Korea is one of the most populous countries in the world. So there is a wide internal market for some of the products while a big portion is exported. Electronic products are always on high and persistent demand due the dynamic nature of electronics technology.
• Affordability of the products:The electronic products from South Korea are of high quality but affordable. This makes them popular around the world, hence highly marketable.
• Government support:The government of South Korea is very supportive to the electronics industry through laying down policies and business-friendly environment, which has promoted the growth and development of the industry. The government also provides financial support in areas like research and development. This has encouraged investment in the industry.
• International relations:South Korea has a good relationship with many countries in the world. This has attracted many countries to become trade partners with South Korea, hence expanding markets for its electronic goods.
• Well developed infrastructure:South Korea has well development transport and communication infrastructures which include an extensive network of railways, roads, seaways and airways that criss-cross the country. Thus, the raw materials and finished goods are transported easily. This makes the export of raw materials cost-effective.
• Availability of energy:South Korea generates power through various means. These include nuclear power, which accounts for 45% of the total power production. The other energy sources are thermal and hydroelectric powers. Energy for use in electronics industry is abundantly available and affordable.

The textile industry in Tanzania

The Tanzania textile industry was developed in 1970s as part of the government’s efforts to industrialize the economy. More than thirty textile mills, most of them owned by the government, were established and were operational throughout the 1980s.

Prior to economic reforms of early 1990s, the textile sector was thriving well. But faced with the withdrawal of government support, removal of trade barriers, and international competition, it soon the textile industry collapsed. Industries such as Mbeya Textiles, Musoma Textiles, and Mwanza Textiles went out of operation.

Manufacturing plants were sold off by the government to private investors, who have rebuilt the industry since the early 2000s. Much of the equipment bought at this stage was antiquated and inefficient, making it difficult for these companies to be internationally competitive; a major constraint they face up to the present.

Indeed, where companies have upgraded or replaced their equipment, it has inevitably been second- or third-hand, and for the most part globally uncompetitive, leaving the industry under great pressure and at considerable risk.

The collapse of the textile industry was due to inadequate supply of cotton lint, lack of power/power interruptions, high power tariffs, unfair competition from imports, and devaluation of Tanzania shilling, hence making it difficult to buy spare parts for the machines.

Today the textile industry is owned and operated by the private textile companies. Currently, there are 59 industries located in different parts of the country, 36 of which are based in Dar es Salaam. A few of these industries are those that were privatized by the government.

The government of Tanzania is trying hard to create a favourable investment climate for the textile industry, but the sector is still performing poorly and hence not contributing significantly to the country’s economy. Homemade textiles are of poor quality but very expensive as compared to those imported from other countries. As a result, most buyers have turned their attention towards purchase and use of second-hand clothes (mitumba) which are durable but affordable.

Problems facing the textile industry in Tanzania

• Outdated machinery:The machinery in most of the textile-manufacturing industries is old. Therefore, the final products manufactured by these industries are of low quality and thus not competitive in the market, both locally and internationally. These machines also have limited capacity which, in turn, limits production.
• High cost of power:The cost of power in Tanzania is considerably higher compared to other countries. This leads to high production costs and, consequently, high prices for textile products. Given that the products are generally poor, they are hence hardly sellable.Through power is very costly, it is also not supplied adequately and persistently mainly because of obsolete transmission system, drought and high oil prices, among others. This problem discourages many investors who would like to invest in the textile industry.
• High cost of spare parts:The cost of spare parts for textile machinery is very high. Sometimes these spare parts are not available in the market because the technology is old and outdated. Most manufactures have stopped manufacturing such spare parts. In addition, carrying out repairs for textile machinery is a very expensive task.
• Lack of skilled labour:The lack of skilled labour in Tanzania prompts dependency on imported labour and skills which are very expensive. Sometimes when machinery breakdown occurs, the operation has to be halted until the imported skilled labour is available to fix it. This leads to stoppage of production and hence, financial losses.
• Competition:The industry faces tough competition from second-hand clothes, known as mitumba, and high quality clothes imported from other countries. Due to this reason, the existing small market has considerably diminished the textile market even further.
• High taxes:Tanzania is one of the countries with many meaningless taxes. The high taxes levied on the textile industry by the government leads to low profits, a heart-breaking challenge to investors.
• High cost of chemicals: he chemicals used in the textile industry, such as sulphuric acid, are imported from abroad using the foreign currency. This, plus other reasons, makes the textile industry unprofitable and thus a difficult business to operate. Imports add highly to operation costs in the textile sector.
• Low capital:Many textile industries operate with limited capital which greatly curtails their abilities to increase production capacity, improve their machinery, or purchase raw materials and industrial chemicals.
• Poor infrastructures:Tanzania is among the countries with very poor transport and communication infrastructures. The poor state of infrastructures means increased transport cost of raw materials from production areas and finished goods from industries to consumers. High production costs lowers the profit margin and hence the capability of industries to operate in a sustainable manner.
• Poor management:The development of the manufacturing industry was previously hampered by poor and horrible management practices. The rate of corruption and poor management is still rampant in this country, a fact that makes it hard for companies with big financial muscles to come and invest in Tanzania in various sectors of the economy.

Ways of encouraging the development of the textile industry in Tanzania

1. The government should support the industry financially, which can be done by offering soft loans to companies that are involved or interested to invest in the textile sector, or through buying shares in these companies. The government could also fund researches on the development of the textile industry.
2. The government should come up with favourable policies which encourage the growth and development of the textile industry. This may include reviewing tax rates and power tariffs, as well as reviewing policies on importation of second-hand clothes from abroad. It should also consider the possibility of exempting taxes on materials imported for textile manufacturing.
3. There is need to improve the production technology to enable production of quality textile products which will be easily marketable. Alternatively, the outdated industrial machinery should be replaced by the new modern machinery that produces high quality and up-to date textile products.
4. Market researches should be conducted tirelessly, aiming at development of new products and finding alternative and cheap means of production. The new products will help boost and push the industry forward.
5. Labour should be trained well about textile technology and production. This can be achieved through introducing textile production courses in vocational colleges and in schools and universities.
6. The government and other stakeholders should improve transport and communication infrastructures so as to reduce the production costs incurred for transporting the textile products and raw materials.
7. The government has relaxed the regulations on importation of raw materials and exportation of goods abroad. This has enabled stakeholders in the textile industry to export their products timely and without incurring high costs.
8. Tanzania is a member of regional organizations, such as the East African community (EAC), and the Southern Africa Development Communality (SADC). Therefore, Tanzania’s textile industry benefits significantly from this combined market of about 150 million people. Market availability will automatically boost the textile industry.

Lessons from Japan and South Korea Industries for Tanzania

Identify lessons from Japan and South Korea industries for Tanzania

Lessons for Tanzania

1. The various industries in South Korea and Japan are well managed. For this reason, they perform well and make profits. The management set objectives that they work hard to achieve. They are not involved in corruption scandals, extravagance or misuse of company resources. Likewise, for Tanzania’s textile industry to develop and grow, good management practices must be encouraged.
2. The well developed transport and communication infrastructure in South Korea and Japan play a big role in the development of industries. Thus, well developed infrastructures are necessary for industrial development. This is because it facilitates the movement of goods and raw materials efficiently. To boost the textile industry in Tanzania, the government should also put more efforts on the improvement and development of infrastructure so as to hasten the movement of raw materials and finished products. This will help to minimize the production costs and hence encourage more people to invest in the industry.
3. Japan and South Korea industries put more emphasis on research and development of products and technology. Tanzania should likewise, invest more on research and come up with new and advanced products that will attract the market.
4. South Korea and Japan have invested a lot in training and development of labour, so Tanzania should do the same. This will ensure constant supply of killed labour to support the growth and expansion of industries in the country.
5. The Koreans and Japanese are very hard-working people and they are seriously committed to their jobs. This is the reason why their industries produce more products of high quality. Tanzanians should adopt this working spirit. There is no short-cut or miracles to success except hard work and commitment. Tanzanians should also work hard and in a committed way, if at all, they want to achieve their goals in industrial growth and development.
6. Just like Japan and South Korea, the government of Tanzania should also formulate policies that favour growth and development of industries. The government may also fund technical activities such as research as well as negotiating favourable trade agreements with other countries to provide a market for its industrial products.
7. The industrial products from both South Korea and Japan are of high quality and can be sold in any country in the world. Industries in Tanzania should follow in similar steps by producing goods that meet international standards. This can be achieved by producing quality and affordable products.
8. Japan’s and South Korea’s industries keep up-to-date with development and technology. That is, they produce goods that match with changes in technological advancements and customers’ demands. They produce advanced and competitive goods. Tanzania’s industries should do the same.
9. Japan and South Korea exploit different energy resources which include nuclear energy, thermal energy, coal and hydroelectricity. Tanzania should also harness different energy resources instead of depending heavily on hydroelectricity which is unreliable and yet expensive. The government should invest on generation of electricity from coal (at Kiwira) and natural gas (at SongoSongo). This will make energy more cheap and available to industries cheaply.

• READ TOPIC 8: Sustainable Use Of Power And Energy Resources

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